PRSA WorkshopMay 6, 2009Tony Lentini, Pixel Creative Group

CRISIS MANAGEMENT WORKSHOP

PRSA – May 6, 2009 Tony Lentini, Pixel Creative Group

38 years Crisis Management, Media Training & PR/Corporate Communications

U.S. Army Middle South Utilities (Entergy) Mitchell Energy & Development Holiday Corp. (Holiday Inn) Apache Corporation Consulting

It can happen to you! Protect reputation & franchise Save valuable product or service Reduce liability Identify resources, contacts well in advance Train & drill before it hits the fan Perception = reality Confidence breeds confidence

Understand BIG PICTURE: What’s at risk; what will it take to fix problem?

Potential long- & short-term impacts on your organization

Potential costs of resolution (money, people, reputation, market share)

7 dead in Chicago: cyanide-laced Extra- Strength Tylenol capsules

Tylenol a top brand. Market share dropped from 37% to 7%

Johnson & Johnson $100 million+ product recall

Re-introduced: Tamper-proof packaging, steep discounts

2,250 sales reps made presentations to medical community to restore confidence

Tylenol saved; 1-yr. market share rebound

Enron put AA on defensive Document shredding, dishonest audits

severely damaged reputation Franchise could have been saved Cost: senior management resignations, self-

reporting to DOJ, SEC “Circle-the-wagons” mentality killed AA

Management, employee buy-in Notification system Crisis Management Team Lawyers on CMT but not in charge Fact files on all facilities: Risks, contact

information, government/public safety officials

Maps of nearby communities, roads, for evacuation planning

Proactive approach: news media and community

Retains Crisis Management Consultant Establishes Issue Management system Strategic focus, BEYOND immediate crisis Drills & training Business continuity plan

Drill, drill, drill: Periodic, unannounced tabletop exercises

Test notification system Test mobilization of CMT Test functioning of operations, PR, etc. Critique and adjust plan

Spokesperson depends on nature, location, severity of crisis

Train PR staff Train field managers CEO definitely needs training Manage not just messages, but appearance

& demeanor

Two types of media training: 1) “Boot camp”2) Positive reinforcement

Successful media interviewing not rocket science, does require training

Training should empower spokespeople; humiliation makes them wary

Boot-camping your CEO could be hazardous to your career

On-camera practice interviews Experience: Ideally, trainer has been on

both sides of camera Scenario-specific to your company Crisis & non-crisis training equally important Small groups best, but train CEO separately Don’t attempt to train senior management

yourself

Essential skill for corporate communicators Your audience? Your goal? Limit messages Support with sound bites, statistics, colorful

anecdotes Anticipate questions, develop answers Learn transitioning Take charge & stick to messages

Experience, contacts from handling many crises

Saves time when timing is critical Expertise in variety of necessary disciplines

(Crisis Management, PR, media training) Outsider’s perspective Can tell management things an employee

may be reluctant to address

Trust begins at home: To gain seat at Crisis Management table, PR needs credibility with senior management

Get to know reporters, public safety officials before a crisis occurs

Contact lists must be part of your plan Trust trumps natural skepticism EXXON’s big problem during Valdez: No

relationships, therefore no trust

Develop evacuation, relocation plan for key management, operations, critical support functions

Secure offsite storage of records Transportation plan for relocation Backup communications (satellite phones,

alternate servers) Establish office-closure notification system

for employees

An invisible page on Web site, activated when need occurs

Platform for internal and/or external crisis updates

Mechanism for informing employees of office closures and activation of business continuity plan

Intranet link can perform same function

Respond (put out the fire) Ensure senior management, appropriate

departments notified Ensure required government/regulatory

notifications accomplished Gather facts Determine whether Crisis Management

Team should be activated, designate spokesperson

Draft media statement Anticipate media questions/develop

answers Notify media? Respond to queries with statement; Update as new information becomes

available Try to make it a one-day story

Answer as many of the five W’s as you can Take responsibility for resolving the crisis Tell the truth Don’t speculate Don’t announce names of deceased/injured Don’t discuss blame, insurance coverage,

causes “It’s under investigation”

Relatively minor events usually may be handled by a skilled spokesperson in your PR department through a brief statement

Social media (Blogs, Twitter, etc.) emerging & evolving: Be very careful using “New Media” in a crisis

Informal communication can backfire or give story “legs”

If you engage social media, treat as any other news medium (be on your toes)

One or two Blog messages do not make a trend

Be selective in choosing which to engage

Be sure of your facts—Rather’s evidence in Bush National Guard story debunked by blogging typewriter experts

Experts abound on Internet Everybody has a camera!!! Internet becoming go-to place for news Rather, mainstream media ignored blogs, to

their detriment

Post-mortem: What went right, what went wrong

Update, change crisis plan accordingly Take steps to prevent crisis from occurring

again Update safety procedures, operational

protocols, training, as needed Communicate with employees &

stakeholders

Working for Middle South Utilities March 28, 1979: Three Mile Island nuclear plant accident near Harrisburg, PA

Partial core meltdown in Unit 2 when coolant relief valve stuck & operators failed to recognize implications

TMI attracted worldwide attention “The China Syndrome” motion picture

released 12 days before TMI

Middle South: one nuke plant operating in Arkansas, four under construction in Arkansas, Mississippi & Louisiana

President of Arkansas subsidiary erred by public announcement of precautionary shutdown

Middle South’s nuclear program in jeopardy

Service-area-wide road show on TMI and nuclear safety (PR rep. and Nuclear Engineer)

Conducted media interviews Prepared booklet: Nuclear Power in the Post-

Three Mile Island Era (distributed nationwide); Featured nuclear power, safety in annual report

that year Proactive approach saved company’s nuclear

program

Late ‘80s protests against in-room “porn” at Holiday Inn hotels organized by American Family Association

Holiday’s PR staff manned “war room” during annual protests: monitoring, providing media interviews, advising hotel managers

Holiday Inn’s market: middle-class families; protests harming franchise

Research: Watched movies (softcore & stupid), angering both pro- and anti-porn guests

Cost of breaking contract less than $200,000 (wasting that much staff time in “war rooms”)

Solution: Bought out contract; protests ended; brand protected

Motorists report crude oil bubbling through highway serving airport near Hobbs, NM

Apache field personnel determine it “might” be from company production

Solution: Act first; determine ownership later

Took responsibility, worked with local authorities to shut in highway, repair leak

Highway reopened within day. Public kudos from highway patrol, airport officials

June 2007: Offshore driller announces possible FCPA problem related to “facilitating payments” to Nigerian customs officials

Noble Corp. recognizes it may have same issue Solution: Take charge. Self-report to DOJ,

SEC; internal Board investigation; examine practices worldwide; announce to media (anticipate all questions)

Resolution: Stock price up on announcement; no fines, prosecutions

Tony LentiniLentini Creative Communications

www.CrisisManagers.comtony@lentinicreativecommunications.com

PR/Crisis Management Counsel Pixel Creative Group

2801 Post Oak Blvd., Suite 101Houston, TX 77056

Mobile: 713-907-5841Office: 713-622-9293

www.pixelcreative.com